CaliforniaRegulators would weigh lower shareholder returns on some utility investments
Once the signed law takes effect, regulators would weigh lower returns on some electric company investments, study financing that could lower customer costs, and require large companies to publish grid data.
What it does
Once the law takes effect, regulators would consider a yearly cut in shareholder returns on certain electric company investments counted in rates. They could skip a cut if they explain in writing why it would make rates unfair.
Once the law takes effect, regulators would study financing that could lower electric customers' costs. Electric companies would report options, and regulators would send findings and recommendations to lawmakers by December 31, 2028.
Once the law takes effect, regulators would require large state-regulated electric companies to publish data on local grid use, room for added demand outside peak hours, and places where tight capacity could delay service.
Argument forIf regulators lower allowed returns on covered investments, customers could pay less when companies recover those costs through rates.
Argument againstIf regulators cut returns on covered investments, shareholders might be less willing to fund buried electrical equipment that can reduce wildfire risk.
More detail
Once the law takes effect, regulators would decide whether to lower an electric company's allowed shareholder return and explain their decision in writing. Covered costs must count toward rates and be recovered through balancing or memorandum accounts, be exempt from review of whether spending was reasonable, or involve burying electrical equipment. Regulators would weigh company risk and incentives to overspend. They could skip a cut for any cost if they find in writing that the cut would make rates unfair. If regulators approve a cut, it would apply each year beginning when they first allow the covered costs to count toward rates.
Once the law takes effect, regulators would study financing options that could lower costs for electric customers. The study would cover investments in producing electricity and moving it through local and long-distance power lines. Regulators would set groups of financing options for each company to assess. Companies would report at intervals regulators set and present the options they find would offer the best value. Regulators would send their findings and recommendations to lawmakers by December 31, 2028.
Once the law takes effect, regulators would require large electric companies to publish data on local grid use and potential for greater use. This requirement would cover only large state-regulated electric companies and sections of their local electricity grids. The data would measure average and peak use, estimate room for added demand outside peak hours, and show strained areas where local energy resources could help.
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Where it stands
- Introduced
- Passed Senate
- Passed Assembly
- To Governor
- Became Law
Looking ahead
No hearings or votes scheduled.
History
- 2026
- Sep 30Chaptered by Secretary of State. Chapter 986, Statutes of 2026.Latest
- Sep 30Approved by the Governor Gavin Newsom.Became Law
- Sep 8Enrolled and presented to the Governor at 4 p.m.To Governor
- Aug 30Assembly amendments concurred in. (Ayes 29. Noes 10.) Ordered to engrossing and enrolling.Major
- Vote recorded SB 905 Becker Senate Third Reading By Boerner. Result: pass.Lower
- Vote recorded Unfinished Business SB905 Becker et al. Concurrence. Result: pass.Upper
- Aug 30In Senate. Concurrence in Assembly amendments pending.
- Aug 30Read third time. Passed. (Ayes 50. Noes 19. Page 6847.) Ordered to the Senate.Passed Assembly
- Aug 18Read second time. Ordered to third reading.Minor
- Aug 17Read second time and amended. Ordered to second reading.Major
- Aug 17From committee: Do pass as amended. (Ayes 11. Noes 3.) (August 13).Major
- Aug 17Assembly Rule 63 suspended.
- Aug 13
- Vote recorded Do pass as amended. Result: pass.Lower
- Aug 5August 5 set for first hearing. Placed on suspense file.
- Jun 29Read second time and amended. Re-referred to Com. on APPR.Major
- Jun 25From committee: Do pass as amended and re-refer to Com. on APPR. (Ayes 12. Noes 4.) (June 24).Major
- Jun 24
- Vote recorded Do pass as amended and be re-referred to the Committee on [Appropriations]. Result: pass.Lower
- Jun 10June 10 set for first hearing canceled at the request of author.
- Jun 1From committee with author's amendments. Read second time and amended. Re-referred to Com. on U. & E.Major
- Jun 1Referred to Com. on U. & E.Minor
- May 26In Assembly. Read first time. Held at Desk.Minor
- Vote recorded 3rd Reading. Result: pass.Upper
- May 26Read third time. Passed. (Ayes 29. Noes 8. Page 4446.) Ordered to the Assembly.Passed Senate
- May 18Read second time. Ordered to third reading.Minor
- May 14Read second time and amended. Ordered to second reading.Major
- Vote recorded Do pass as amended. Result: pass.Upper
- May 14From committee: Do pass as amended. (Ayes 5. Noes 2. Page 4256.) (May 14).Major
- May 8Set for hearing May 14.
- May 4May 4 hearing: Placed on APPR. suspense file.
- Vote recorded Placed on suspense file. Result: pass.Upper
- Apr 24Set for hearing May 4.
- Apr 22From committee: Do pass and re-refer to Com. on APPR. (Ayes 13. Noes 2. Page 3973.) (April 21). Re-referred to Com. on APPR.Minor
- Apr 21
- Vote recorded Do pass, but first be re-referred to the Committee on [Appropriations]. Result: pass.Upper
- Apr 16Set for hearing April 21.
- Mar 25Re-referred to Com. on E., U & C.Minor
- Mar 17From committee with author's amendments. Read second time and amended. Re-referred to Com. on RLS.Major
- Feb 11Referred to Com. on RLS.Minor
- Jan 23From printer. May be acted upon on or after February 22.
- Jan 22Introduced. Read first time. To Com. on RLS. for assignment. To print.Introduced
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